Texas Health Spa Bond

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How much does a health club bond cost in Texas?

The Texas Secretary of State requires health clubs to post surety bonds as part of the registration process. The required bond amount is based on the total amount paid for prepaid memberships at the health spa location. A breakdown of the required bond amounts can be found in the table below.

Because these bonds are subject to underwriting consideration, the price you’ll pay depends directly on your required bond amount and a review of your personal credit report. The best way to find out exactly how much you’ll pay for your bond is to request your free surety bond quote now!

*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Call 1 (800) 308-4358 or click here to connect with our team of surety bond experts. We can typically provide your free, no-obligation bond quote within 1 business day of submitting your application!

Why do I need this bond?

By posting a Texas health spa bond, the principal (health spa) agrees to abide by all rules, laws and regulations stated in Chapter 702 of the Texas Occupations Code, which is also referred to as the Health Spa Act. Specifically, these bonds protect a member of a health spa who suffers financial loss as a result of the closing of the health spa. In this case, financial loss refers to any unused or unearned portion of the member’s dues or fees.

Our team of surety experts is dedicated to getting you bonded quickly and for the lowest available rate. Contact one of our surety experts to receive a personalized, complimentary bond quote within 1 business day of applying.

What’s the fine print?

Health spa bonds in Texas remain continuous until canceled by the surety. The surety can cancel the bond by giving written notice of cancellation to the secretary of state at least 60 days prior to the effective cancellation date.

These bonds must be maintained for 2 years after the date on which the health spa ceases to operate or until the secretary of state determines that each claim made on the bond has been satisfied or foreclosed by law.

How to start a health club in Texas

A person must obtain a health spa operator’s certificate of registration from the Secretary of State before operating a health spa or offering for sale or selling a membership in a health spa. An operator’s certificate of registration is required for each health spa location. Unless the person qualifies for an exemption, a security deposit must be posted with the Secretary of State for each location.

Section 702.352 of the Occupations Code requires an escrow account to be established if a health spa accepts prepayment for memberships before the health spa opens. The escrow account must be established with a financial institution insured by the Federal Deposit Insurance Corporation no later than 14 days after the first prepayment is accepted. The following items must be filed with the secretary of state by the same deadline:

a notarized statement identifying the financial institution holding the escrow account and the name in which the escrow account is held

a signed statement on a form approved by the secretary of state authorizing the secretary of state to direct inquiries to the financial institution regarding the escrow account